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Diesel prices in the UK have seen their largest monthly fall in over a quarter of a century, new figures reveal, as the cost of oil plummeted following an easing of the Iran crisis.
The RAC reported that the average price of a litre of diesel at British forecourts dropped from 183.8p at the start of June to 167.1p by the month's end.
This reduction of more than 16p per litre is the most significant recorded since 2000.
The sharp decline in oil prices, a key factor in fuel costs, saw them fall below pre-crisis levels for the first time since the war began on 28 February.
This was largely due to a US-Iran peace deal, which enabled more tankers to pass through the crucial Strait of Hormuz last week.
This meant the cost of oil, which is a major influence on fuel prices, fell below pre-crisis levels for the first time since the war started on February 28.
(This reduction of more than 16p per litre is the most significant recorded since 2000)The average price of a litre of petrol fell by 8p last month, from 159.4p to 151.4p.
RAC head of policy Simon Williams said: “June has been a far better month for drivers on the back of the announcement of a deal between the US and Iran to end the conflict.
“The price of oil has fallen dramatically and prices at the pumps have reflected that.”
But he noted that the cost of fuel remains “far higher than it was at the start of the war”, with average prices for a litre of petrol and diesel still 19p and 25p respectively more expensive.
He added: “As things stand, petrol should dip under 150p soon and diesel ought to get to below 160p, but we would need the price of oil to fall further to see a return to the pre-conflict prices.”
Lat month, the average price of a litre of petrol fell to its lowest level since early April, and experts said drivers could be set to experience even lower prices in the coming months.
According to analysis by the RAC, the average price of petrol fell by nearly 5p since its conflict high of 159.53p on May 28, to 154.72p on June 18.
The cost of the Iran oil crisis on UK drivers was around £4 billion as a result higher fuel prices, according to analysis.
Motoring research charity, the RAC Foundation, estimated that rises in pump prices since the conflict in the Middle East began have led to motorists paying £3 billion more for diesel and just over £1 billion more for petrol.